Nigeria becomes regional hub for refined petroleum trade

Nigeria has emerged as a key regional hub for refined petroleum products, positioning itself as a rival to Lomé, Togo which is the long-established centre for refined fuel trading in sub-Saharan Africa.

This development was highlighted by industry experts at the Oil Trading and Logistics (OTL) Africa Downstream Week 2025 held in Lagos.

The Vice President of Argus Media, James Gooder, noted that Nigeria has transformed from a “price-taker” into a dynamic trading and pricing centre for refined products.

He described the liberalisation of the gasoline market as a “historic opportunity” that is fostering competition and aligning fuel prices with international standards.

Gooder explained that effective commodity trading depends on a shared understanding of quality, delivery, and pricing among market participants.

He said Nigeria’s gasoline market is now increasingly benchmarked against global standards, with local traders adopting the Argus EBOB benchmark which is previously used only in European markets.

He added that deregulation and increased production from the Dangote Refinery have attracted new importers, enhanced competition, and improved market efficiency for both traders and consumers.

“Market participants in Nigeria and across the region are now choosing to base their regional gasoline pricing at negotiated premiums to the commonly accepted Argus EBOB benchmark,” he said.

Also speaking, Dr. Riverson Oppong, CEO of the Chamber of Oil Marketing Companies (Ghana) and Africa Regional Director, said Africa’s downstream petroleum market is entering a phase of rapid growth, projected to expand from $80.5 billion in 2024 to $120.8 billion by 2032.

He cited a McKinsey report forecasting that Africa’s fuel demand would rise by 2.2 million barrels per day between 2019 and 2035, with a 2.3% compound annual growth rate (CAGR) making the continent one of the fastest-growing downstream markets globally, alongside South and Southeast Asia.

Oppong emphasized that digital transformation is now critical for competitiveness in the oil downstream sector.

He said adopting technologies such as Advanced Process Control (APC), digital twins, and predictive maintenance could cut operating costs by up to 20%, boost plant efficiency by up to 12%, and reduce unplanned shutdowns by as much as 25%.

He urged operators to assess their digital readiness, create transformation roadmaps, and deploy scalable digital solutions to remain competitive.

According to him, joint ventures and strategic partnerships will also play a key role in helping smaller operators share risks, access capital, and expand market reach especially in countries like Ghana, where a handful of firms dominate the oil marketing landscape.